Brunson Corp Pension Plan Information for Current Fiscal Year Beginning balance

Question

Brunson Corp Pension Plan
Information for Current Fiscal Year

Beginning balance of plan assets at market value $1,560,000
Actual return on plans assets 210,000
Employer's contribution 150,000
Distribution to beneficiaries 75,000
Service cost 125,000
Interest cost 156,000
Changes in benefits and assumptions 35,000
Beginning balance of the PBO 1,580,000

What is the ending balance of the projected benefit obligation (PBO)
a. 1,730,000 b. 1,821,000 c, 1,896,000 d, 1,971,000

At the beginning of the year, the pension plan is:
a. Overfunded by 20,000
b. Overfunded by 35,000
c. Underfunded by 20,000
d. Underfunded by 35,000

The underfunding or overfunding of the plan at year end will be disclosed in the:
a. balance sheet of the plan sponsor
b. balance sheet of the plan trustee at cost
c. income statement of the plan sponsor
d. notes to the financial statements of the plan sponsor

Explanation / Answer

$1,560,000 +210,000-150,000-75,000-125,000-156,000-35,000 =1 229 000 profit of 331,000 PBO=1580+old 1.c, 1,896,000 2.b. Overfunded by 35,000 3.a. balance sheet of the plan sponsor PLEASE RATE

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